By Abiola Olawale
In a bold move to reshape global finance, China has officially launched its digital RMB cross-border settlement system.
It was gathered that this groundbreaking initiative connects ten ASEAN countries and six Middle Eastern nations, enabling a staggering 38% of the world’s trade volume to bypass the United States dollar-dominated SWIFT system.
The system, powered by the People’s Bank of China (PBOC), promised near-instantaneous 7-second transactions and a 98% reduction in fees compared to traditional methods, positioning the digital yuan as a formidable challenger to the dollar’s reign.
Some economic analysts have stated that the launch of the digital cross-border system is a significant step in China’s strategy to become a world power and reduce dependence on the US dollar amid escalating trade tensions and geopolitical rivalry.
This comes after US President Donald Trump slammed a series of trade tariffs against China and other countries, including Canada.
Some analysts have said that by integrating with key trading partners across Southeast Asia and the Gulf, China appears to be a dollar-independent economic bloc, leveraging its digital currency to streamline payments and bolster financial sovereignty.
Also, official data have revealed that the cross-border RMB settlement volume of ASEAN countries exceeded 5.8 trillion yuan in 2024, an increase of 120% over 2021.
Six countries, including Malaysia and Singapore, have included RMB in their foreign exchange reserves, and Thailand has completed the first oil settlement with digital RMB.
Digital RMB is not only a payment tool, but also a technical carrier of the “Belt and Road” strategy.
In projects such as the China-Laos Railway and the Jakarta-Bandung High-Speed Railway, the digital RMB is deeply integrated with Beidou navigation and quantum communication to build a “Digital Silk Road”.
When European car companies use digital RMB to settle freight through the Arctic route, China is using blockchain technology to increase trade efficiency by 400%. This virtual-real strategy makes the US dollar hegemony feel a systemic threat for the first time.
Today, 87% of countries in the world have completed the adaptation of the digital RMB system, and the scale of cross-border payments has exceeded 1.2 trillion US dollars. While the United States is still debating whether digital currency threatens the status of the US dollar, China has quietly built a digital payment network covering 200 countries. This silent financial revolution is not only about monetary sovereignty but also determines who can control the lifeline of the future global economy.
